As Musk's acquisition of Twitter is coming to an end, many people are speculating about what will happen after Musk acquires the company, and recently, analysts from several Wall Street companies said in a report to investors that Tesla CEO Elon Musk's acquisition of Twitter may increase advertising revenue from YouTube, Snap, Facebook parent company Meta and TikTok.
While Musk has this idea, everyone knows Musk's personality, and he is outspoken that he believes that freedom of speech is crucial to the platform, which means that there will be less content moderation, so his approach may pull away the way advertising revenue is.
In response, JMP analysts said in a note on Tuesday that brands don't want their content to appear next to misinformation or hate speech, which could pull back their spending. At the same time, the analyst also wrote that "about 85% of Twitter's revenue comes from brand advertising, and advertisers may shift their budgets to other channels for brand safety concerns," which could help YouTube, Snap, Meta, and TikTok.
Musk, meanwhile, also seems interested in building Twitter's new subscription model. Earlier this month, Musk made a series of recommendations for Twitter's Twitter Blue subscription service, including price cuts, banning ads and allowing users to pay with Dogecoin. For Musk's idea, MKM analysts wrote in a note on Tuesday that it could benefit small businesses like Pinterest and Snap.
Similarly, Evercore analysts said Monday that there is a "clear possibility" for enterprise marketers to bring their activities to platforms such as Reddit, Google, Meta, Snap and TikTok. So it seems that the Twitter company is going to "change a lot", I don't know if everyone is looking forward to the Twitter company after being "transformed" by Musk?